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1 month ago
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ARTICLE AD BOX
Summary
When demand and supply are out of whack, the price mechanism is supposed to resolve it. But going by Saturday’s chaos in Kolkata, it seems marketers need refresher lessons in Marketing 101, not Economics 101.
A simple market rule-of-thumb has long taken hold. If demand for something vastly exceeds supply, price it—so that those willing to pay or outbid others get the privilege. This may have motivated ticket prices ranging from ₹3,800 to ₹11,800, as reported, for a seat in Kolkata’s Salt Lake Stadium to catch a glimpse on Saturday of star footballer Lionel Messi.
Scarcity economics, however, can go wrong if it’s divorced from human behaviour. While an estimated 60,000 fans packed the stadium, Messi wasn’t there to play the “beautiful game.” All that the crowd got to see on the pitch was a swarm of people around the Argentine player.
Chaos ensued as irate fans went on a rampage. While nothing justifies such a response, the idea of charging for an abstract joy like the live sight of a heroic figure surely deserves scrutiny. What are the odds of customer expectations being met?
This is why marketers are generally advised to think beyond the profit potential in a demand surge and focus squarely on the fulfilment of consumer needs. One doesn’t need a psychographic profile of the target buyer to get it right. More often than not, empathy inspired by common sense is enough.
English (US) ·